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IMPACT OF ACCOUNTING INFORMATION SYSTEMS ON ORGANIZATIONAL

EFFECTIVENESS OF AUTOMOBILE COMPANIES IN

 TABLE OF CONTENTS

Declaration...................................................................................................................................... i
Acknowledgement ......................................................................................................................... ii
Dedication ..................................................................................................................................... iii
Abstract ......................................................................................................................................... iv
List of Abbreviations ................................................................................................................... vi
Table of Contents ........................................................................................................................ vii
List of Tables ................................................................................................................................ xi
CHAPTER ONE : INTRODUCTION
1.1 Background of the Study ...................................................................................................... 1
1.1.1 Accounting Information Systems ................................................................................. 2
1.1.2 Organizational Effectiveness ........................................................................................ 3
1.1.3 Relationship between Accounting Information Systems and Organizational
Effectiveness ................................................................................................................. 4
1.2 Research Problem ................................................................................................................. 5
1.3 Objective of the Study .......................................................................................................... 7
1.4 Importance of the Study ........................................................................................................ 7
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction ........................................................................................................................... 8
2.1 Theoretical Literature............................................................................................................ 8
2.1.1 Contingency Theory ..................................................................................................... 8
2.1.2 Agency Theory ............................................................................................................. 9
2.1.3 Behavioral Theory ...................................................................................................... 10
2.2 Determining Criteria of Effectiveness ................................................................................ 10
2.3 Empirical Literature ............................................................................................................ 11
2.3.1 AIS and Organizational Effectiveness ........................................................................ 11
2.3.2 Internal Controls ......................................................................................................... 12
2.3.3 Human Resources ....................................................................................................... 14
2.4 Review of Local Studies ..................................................................................................... 16
2.5 Summary ............................................................................................................................. 17

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CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction .........................................................................................................................19
3.2 Research Design..................................................................................................................19
3.3 Population and Sample .......................................................................................................19
3.4 Data Collection ...................................................................................................................20
3.4.1 Reliability and Validity of Data ....................................................................................... 20
3.5 Data Analysis ......................................................................................................................20
3.5.1 Conceptual Model ............................................................................................................ 21
3.5.2 Analytical Model ............................................................................................................. 22
CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION
4.1 Introduction .........................................................................................................................23
4.2 Summary Statistics..............................................................................................................23
4.2.1 Response Rate.............................................................................................................23
4.2.2 Trading name of the respondent’s company ...............................................................23
4.2.3 The legal status of the respondent’s firm....................................................................24
4.2.4 The respondent’s years of service ..............................................................................24
4.2.5 The gender of the respondents ....................................................................................25
4.2.6 The respondent’s department ......................................................................................26
4.2.7 The leadership team has a clear vision and mission ...................................................26
4.2.8 The vision is known to all...........................................................................................27
4.2.9 Staff are involved in achieving the vision and mission ..............................................28
4.2.10 Each department has measures of their quality of service ..........................................28
4.2.11 Organizational performance is measured regularly ....................................................29
4.2.12 Performance measures are shared regularly with staff ...............................................30
4.2.13 Financial reports are published regularly ...................................................................30
4.2.14 Managers set personal and business objectives ..........................................................31
4.2.15 People are committed to the organization ..................................................................32
4.2.16 The morale of staff is positive ....................................................................................32
4.2.17 The market is relatively stable ....................................................................................33
4.2.18 Employees know what is expected of them................................................................33
4.2.19 Employees have the materials and equipments needed to do their job ......................34

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4.2.20 Employees are encouraged to develop their knowledge and skills ............................ 35
4.2.21 Employees are committed to doing quality work ....................................................... 35
4.2.22 The company has been reporting increased profits..................................................... 36
4.2.23 The company has been reporting increased revenue .................................................. 37
4.2.24 The company has been reporting increased market share .......................................... 37
4.2.25 Does your firm use any AIS for its financial and economic management ................. 38
4.2.26 Does AIS play an important role in planning the firm’s strategies............................. 38
4.2.27 Shortcomings of using AIS ......................................................................................... 39
4.2.28 Do you use the same computerized accounting program for financial, cost and
management accounting ............................................................................................. 39
4.2.29 How long have you been doing your accounting with a computer program .............. 40
4.2.30 Does computerized AIS allow you to manage your cash position with banks ........... 41
4.2.31 Does AIS allow you to manage your fiscal affairs with government bodies .............. 42
4.2.32 Does AIS improve your firm’s organization and administration................................ 42
4.2.33 Are you familiar with new technologies such as ERP, CRM and XML .................... 43
4.2.34 Rating of your AIS towards organizational effectiveness .......................................... 44
4.2.35 The System is reliable ................................................................................................. 44
4.2.36 The System is easy to learn and understand its features ............................................. 45
4.2.37 The response time for the system is fast ..................................................................... 46
4.2.38 The System is flexible ................................................................................................. 46
4.2.39 Management reports are reliable................................................................................. 47
4.2.40 Web pages are accurate and updated .......................................................................... 48
4.2.41 System outputs are clear ............................................................................................. 48
4.2.42 IT team provide support for the system ...................................................................... 49
4.2.43 IT team has the technical competence ........................................................................ 49
4.2.44 ICT team is responsive, timely and reliable................................................................ 50
4.2.45 Staff utilize the capabilities of an information system................................................ 51
4.2.46 Customers utilize the capabilities of an information system ...................................... 51
4.2.47 The system is appropriately used ................................................................................ 52
4.2.48 The system is extensively used ................................................................................... 53
4.2.49 Users are satisfied with the system reports ................................................................. 53

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 4.2.50 Users are satisfied with the IT team support .............................................................. 54
4.2.51 AIS improves decision making ................................................................................... 54
4.2.52 AIS improves firm sales, profits and market efficiency ............................................. 55
4.2.53 AIS reduces operating costs ....................................................................................... 56
4.2.54 AIS improves consumer welfare ................................................................................ 56
4.2.55 AIS leads to creation of jobs and economic development.......................................... 57
4.3 Empirical Model ................................................................................................................. 58
4.4 Discussion ........................................................................................................................... 59
4.5 Summary ............................................................................................................................. 59
CHAPTER FIVE: SUMMARY,CONCLUSION AND RECOMMENDATIONS
5.1 Introduction ......................................................................................................................... 60
5.2 Summary of the Study ........................................................................................................ 60
5.3 Conclusion .......................................................................................................................... 61
5.4 Limitation of the Study ....................................................................................................... 62
5.5 Recommendations for Further Study .................................................................................. 62
References ..................................................................................................................................... 63
Appendix I:Questionnaire ........................................................................................................... 68